What is considered taxable interest on a 1040EZ form?
First of all, the 1040EZ and 1040 Short Form no longer exists for 2018. The only federal tax form is the new 1040. The new form is available on the IRS’s website.
Taxable interest is reported on Line 2b of the new form. This is any interest reported to you on Form 1099-INT or 1099-OID, from banks, treasury bills, notes, bonds, or interest you receive on the repayment of any personal loans you may have made to family and friends.
It does not include interest on municipal bonds issued by a state or political subdivision, Series EE, and Series I bonds issued after 1989 if used for higher education expenses.
Visit the IRS’s website for more information on taxable and tax-exempt interest.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.
Answered by: Anthony R. Deutsch, CPA, is a shareholder with Concannon, Miller & Co. PC in Bethlehem, Pa.